Correlation Between AMC Networks and Cable One
Can any of the company-specific risk be diversified away by investing in both AMC Networks and Cable One at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AMC Networks and Cable One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMC Networks and Cable One, you can compare the effects of market volatilities on AMC Networks and Cable One and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AMC Networks with a short position of Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Networks and Cable One.
Diversification Opportunities for AMC Networks and Cable One
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AMC and Cable is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding AMC Networks and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One and AMC Networks is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AMC Networks are associated (or correlated) with Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of AMC Networks i.e., AMC Networks and Cable One go up and down completely randomly.
Pair Corralation between AMC Networks and Cable One
Given the investment horizon of 90 days AMC Networks is expected to under-perform the Cable One. In addition to that, AMC Networks is 1.53 times more volatile than Cable One. It trades about -0.26 of its total potential returns per unit of risk. Cable One is currently generating about -0.26 per unit of volatility. If you would invest 44,519 in Cable One on January 20, 2024 and sell it today you would lose (4,958) from holding Cable One or give up 11.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
AMC Networks vs. Cable One
Performance |
Timeline |
AMC Networks |
Cable One |
AMC Networks and Cable One Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AMC Networks and Cable One
The main advantage of trading using opposite AMC Networks and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Networks position performs unexpectedly, Cable One can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cable One will offset losses from the drop in Cable One's long position.AMC Networks vs. Mirriad Advertising plc | AMC Networks vs. INEO Tech Corp | AMC Networks vs. Kidoz Inc | AMC Networks vs. Marchex |
Cable One vs. Liberty Global PLC | Cable One vs. Shenandoah Telecommunications Co | Cable One vs. Liberty Global PLC | Cable One vs. Liberty Latin America |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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